Council Tax Increase 2026: What You Need to Know

Council tax bills are rising again in 2026, with the average Band D household now paying significantly more than just a few years ago. If you are already struggling with council tax payments, these increases could push you further behind. Here is what you need to know about the latest rises and what you can do about it.

How Much Is Council Tax Going Up in 2026?

For the 2026/27 financial year, most councils in England have opted for the maximum permitted increase of just under five per cent, including the social care precept. The average Band D bill now sits at around £2,280 per year, a rise of roughly £110 compared to last year.

Since the 2020/21 period, average annual bills have climbed by more than 25 per cent. For many households, wages simply have not kept pace with these increases, leading to a growing number of people falling into council tax arrears.

Why Do Councils Keep Raising Bills?

Local authorities are under enormous financial pressure. Years of cuts to central government funding have forced councils to rely more heavily on council tax income to pay for essential services like social care, waste collection, policing and fire services.

Some councils in severe financial difficulty have been granted permission to raise bills above the usual cap without holding a local referendum. While this helps plug funding gaps, it places an even greater burden on residents who are already stretched.

Understanding Your Council Tax Band

Properties in England are placed into one of eight bands (A to H) based on their estimated value in April 1991. Wales uses nine bands (A to I) based on a 2003 revaluation.

Many households are paying more than they should because their property is in the wrong band. You can check your banding for free on the GOV.UK council tax band checker. If your band is incorrect, you could be entitled to a refund and a lower bill going forward.

Are You Entitled to a Discount or Exemption?

Thousands of people miss out on council tax reductions simply because they do not know they qualify. You may be eligible for a discount if you live alone, are a full-time student, receive certain benefits or act as a carer.

If your financial circumstances have changed recently, it is worth contacting your local council to check whether your bill can be reduced. Even a small reduction can make a real difference when money is tight.

What Happens If You Fall Behind?

Council tax is classed as a priority debt, which means councils can take enforcement action quickly if you miss payments. This can include court summons, liability orders and bailiff visits, all of which add extra fees to what you owe.

If you are already behind on your council tax or worried about keeping up with the new rates, do not wait for things to escalate. Getting advice early gives you far more options for resolving the situation.

Need Help With Your Council Tax?

Our team provides free advice and mediation for people across England and Wales who are struggling with council tax debt. We can negotiate with your council and enforcement agents on your behalf to find a manageable way forward.

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